Navigating Credit Markets in a High-Rate Environment

This chapter explores the challenges and opportunities for credit investors amidst a high-rate environment, emphasizing the importance of credit picking and patience. It discusses the market's anticipation of rate cuts, potential over-optimism, and the shift from total return to income sustainability in credit investments. The chapter also delves into the concept of equity risk premium and its implications on borrowing for growth and the attractiveness of income from debt investments.